This chapter is an introduction to International marketing. It covers the need for International Marketing, Difference between Domestic and International Marketing, The EPRG frame work, Challenges for International Marketing.
2. Global Brands
Apple Samsung
Google GE
Microsoft Coca-Cola
IBM Vodafone
Walmart Amazon.com
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3. Indian firms in Global Ranking
Tata
Airtel
State Bank of India
Reliance
Indian Oil Corporation
Infosys
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4. Indian international companies
• The Tata group operates
in more than 80 countries
and markets across:
– AFRICA
– ASIA
Ratan Tata, Chairman, Tata Sons,
sums up the Tata group’s efforts to – AUSTRALIA
internationalise its operations
thus: “I hope that a hundred years – NORTH AMERICA
from now we will spread our
wings far beyond India, that we
– SOUTH AMERICA
become a global group, operating – EUROPE
in many countries, an Indian
business conglomerate that is at
home in the world, carrying the
same sense of trust that we do Bindumadhavi P 4
5. Top 15 cities to do business
Top 15 cities in the world to do Business
1. Ahmedabad – India 8. Doha - Qatar
2. Gurgao – India 9. Melbourne
10. Bogota
3. Chengdu - china
11. San José
4. Changquing – china
12. Santiago – Chile
5. Austin – US 13. Lagos – Nigeria
6. Salt lake city – US 14. Warsaw – Poland
7. Vancouver – Canada 15. Stockholm - Sweden
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6. Chapter Learning Objectives
1. The Distinction between Domestic and Global
Marketing
2. The scope of the Global marketing task
3.The increasing importance of global awareness
4. The progression of becoming a global marketer
5. Major Concerns of International Marketers
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7. What is International Marketing
International marketing is defined as the
performance of business activities designed to plan,
price, promote, and direct the flow of a company’s
goods and services to consumers or users in more
than one nation for a profit
Marketing
concepts,
It is an approach of a company processes, and
with truly global outlook, seeking principles are
its profit impartially around the universally
world, on a planned and applicable all
systematic basis. over the world
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8. Why go International?
Domestic Market
Profit Motive
constraint
Government Policies Spin off benefits
Monopoly Power Competition
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9. Factors Influencing Global
Business
• North American free
Rapid growth of world trade area
trade organization
• European Union
Trend towards acceptance
of free market system • Asia
among developing • Europe
countries
Impact of Internet, Mobile • Global channels
phones and other global
media • Global customers
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12. Domestic v/s International
Similarities Differences
• Political Entities
• Legal systems
• Understanding buyers • Cultural differences
needs • Different monetary systems
• Building Goodwill • Marketing infrastructure
• Research Development • Trade Restrictions
• Procedures and
documentations
• Highly unpredictable
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13. Progression to Global Marketing
EPRG FRAMEWORK
Ethnocentric
Polycentrism Regiocentrism Geocentrism
- Home
- Host country - A regional - A world
country
orientation orientation orientation
orientation
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14. EPRG FRAMEWORK
Ethnocentric Domestic techniques and
Personnel are considered
- Self superior
Reference
Criterion
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15. Ethnocentric
• Overseas operations are viewed as secondary to
domestic operations
• Considered as a means to dispose of surplus
domestic production
• Plans for overseas market are developed in the
home office, utilizing policies and procedures
identical to those employed in the domestic
market
• Overseas marketing is looked after by home
country nationals
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16. Ethnocentric continued
• No systematic research is conducted overseas
• No major modifications are made to products sold
in overseas markets
• Prices are calculated on the same basis as in the
home market with the addition of overseas
distribution costs
• Promotion and distribution strategies are similar
to that employed in the home country
• Strong reliance on export agents
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17. Surf – Super washout in Japan
Unilever enters Japan Detergent Market
• It releases Surf Super concentrate washing powder in
Japan
• Measured sachets for Convenience
• Fresh Smell
WHAT WENT WRONG??
18. Un explored market
• Washing powder did not dissolve completely
due to weather conditions
• Low agitation washing machines were more
popular in Japan, in which the super
concentrate surf washing powder did not wash
completely
• Fresh smell was not very significant
19. EPRG FRAMEWORK
Polycentrism Local Personnel and
Techniques are best
- Host
country suited to deal with local
orientation market conditions
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20. Polycentric orientation
• Subsidiaries are established in overseas market
• Each subsidiary operates independently with its own
marketing objectives and plans
• Marketing activities are organized on country by
country basis
• Marketing research is conducted independently in each
country
• Separate product lines are developed in each country
• Home country products are modified to meet local
needs.
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21. Polycentric continued
• Each subsidiary will have its own pricing and
promotion policy
• Sales personnel from those countries
• Traditional channels of distribution of those
countries
Eg. McDonalds – Veg
burgers in India
McDonald’s does not use multiple 4’s in
advertising prices in China; four sounds like the
word death.
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22. EPRG FRAMEWORK
Recognizes
regional
Regiocentrism commonalities
- A regional and leads to
orientation the design of
regional
strategies
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23. EPRG FRAMEWORK
Best man for
the job Geocentrism
irrespective
- A world
of national orientation
origin
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24. Regiocentric and
Geocentric
• Region or entire world as potential market
• Firm develops policies and organizes activities
on a regional or worldwide basis
• Marketing personnel from the region or from
any country
• Standardized product lines for regional or
worldwide markets
• Regional or Global channels of distribution are
also developed
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25. Conclusion
The globalisation of Markets has necessitated
all managers to pay attention to International
marketing.
Other than Environmental factors, self
reference criterion are considered obstacles to
International Marketing.
Global awareness and sensitivity are the best
solutions challenges faced in International
marketing
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26. Reference –
1. International Marketing by Cateora and
Graham
2. International Marketing by Czinkota and
Ronkainen
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Notas do Editor
Presentation slide for courses, classes, lectures et al.